The euro is just on such a tear. New highs almost every day.
Via FinViz, check out this chart of the Euro against the dollar going back to August.
The blame seems to lie at the feet of the ECB.
Says SocGen’s Kit Juckes in a note today:
The Kiwi’s inability to benefit reflects concern that sexy currencies (AUD, NZD, KRW, MXN, CAD) have rallied so far against the US dollar that policy-makers will at the very least try and slow them down by expressing concern at valuations. The exception, at least for now, is the Euro. The ECB is doing nothing to talk down the currency and everything necessary to send it higher.
There’s something very Japanese about what’s going on in Europe. The economy is weak and arguably not recovering at all, exporters are increasingly getting frustrated by euro strength, and yet the ECB is doing nothing. In fact most of the talk is about repayment of LTRO loans (quasi de-easing). This is a recipe for an unwanted Euro surge.